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Singapore: Players complete first ‘live’ bunker delivery financing pilot with eBDN

DBS, TFG Marine, Ocean Network Express, Ascenz, and MPA completed Singapore’s first live bunker delivery financing pilot transaction via eBDN.

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Singapore financial services group DBS  in partnership with Trafigura Group’s marine fuels supply and procurement joint venture TFG Marine, maritime players Ocean Network Express (ONE) and Ascenz, and supported by the Maritime and Port Authority of Singapore (MPA), on Wednesday (21 July) said they successfully completed Singapore’s first live bunker delivery financing pilot transaction. The transaction was done by way of an electronic bunker delivery note (BDN).

Singapore is the world’s leading bunkering hub in terms of volume, with close to 50 million tonnes of marine fuel sold in 2020. However, banks currently rely on physical copies of the BDN and other supporting documents to avail bunker financing to clients. This is a cumbersome process that typically takes a few days to a week as clients have to manually deliver the physical BDN back to shore for compilation with other paper documents, before a trade finance application can be submitted. The newly digitalised process demonstrated that in future clients will be able to obtain financing for their underlying trade in under two hours, enabling them to obtain working capital faster and better manage their cashflows.

Another pain-point the digital BDN mitigates against is the risk of fraud in the bunker industry. In the traditional bunker trade world, the physical BDN has a higher risk of being manipulated as it can be used to request for financing for underlying deliveries which may not be genuine or which could have already been financed by another bank. With the digitalisation of the BDN, this risk is mitigated as counterparties are now able to ascertain the trade data at source. This is done by leveraging the Mass Flow Meter (MFM) system for bunkering electronically. This helps to provide greater transparency and certainty to participants in the bunker trade supply chain ecosystem.

Sriram Muthukrishnan, Group Head of Trade Product Management, DBS, said, “Trust and transparency are the keys to Singapore’s continued leadership in trade and trade finance. The digitalisation of bunker delivery notes is one of many pivotal steps necessary to transition Singapore’s bunkering sector into the digital era and to ensure our port and shipping industry is future-ready. The objective is to co-create an end-to-end digital workflow that enhances efficiency and transparency for bunker trades, while building trust with banks and shipowners which are fundamental to the long-term growth and development of Singapore’s bunker ecosystem.”

Kenneth Lim, Assistant Chief Executive (Industry) of MPA, said, “MPA has been accelerating the maritime industry’s digital transformation efforts, and these include digitalisation of the bunkering sector, a vital part of our hub port service offering. The adoption of digital documentations will help stakeholders across the value chain move towards more efficient and transparent operations that are aided by data-driven decision making. We welcome more of such private-public collaborations facilitated by our regulatory sandbox, that will help Singapore remain the world’s leading bunkering port.”

Kenneth Dam, Global Head of Bunkering, TFG Marine said, “This pilot project has allowed TFG Marine to demonstrate how the use of Mass Flow Meters, that we have installed on our barges in the port of Singapore and elsewhere, not only increases transparency for customers in terms of the quantity of fuel received, but can also be adapted to provide real time information as a digital bunker delivery note to counterparties including customers, the port authority, financing banks and port agents. Singapore is already one of the busiest bunker hubs in the world and will benefit further by utilising digitalisation to increase transparency.”

Julien Glory, Chief Executive Officer, Ascenz, said, “We are proud to contribute to the digitalisation of Singapore’s bunkering sector with our advanced business process automation solution. Our electronic bunkering delivery note provides Singapore’s maritime ecosystem with a more efficient, accurate and transparent data collection technology. By improving the end-to-end traceability, this major innovation supports trust between participants in the bunker trade, including banks, buyers and suppliers. With the digital revolution speeding up in the maritime sector, Ascenz is well positioned to help the maritime players sail that ocean of opportunities. We build smart technology to support their efficiency and sustainability.”

Takashi Kase, Senior Vice President (Fuel & Global Vessel Operations), ONE, said, “The eBDN is a significant milestone for the Singapore Marine Fuel industry and ONE is proud to be an integral part of this journey to drive digitalisation and enable enhanced efficiency. Singapore Maritime ecosystem’s readiness to leapfrog and lead the global industry innovations, creating a transparent and well-managed digitisation flow, will further strengthen the dependability and reliability of Singapore as a Marine Fuel Hub.”

Part of broader efforts to digitalise financing services for Singapore’s maritime sector

The live pilot transaction comes on the back of a joint agreement signed between DBS and MPA in 2020, to accelerate the digitalisation and innovation of financial services and payments across Singapore’s maritime industry.

The collaborative areas which MPA and DBS have identified include streamlining and enabling payment transactions between the users of maritime services to expedite end-to-end payment life cycles, as well as digitalising supporting documents for financing. MPA and DBS will also facilitate innovation and creation of potential new financial solutions with the startups ecosystem for the maritime sector.

Future integration with SGTraDex

For the next phase of development, there are plans to integrate the use of digital BDNs with SGTraDex once the digital utility is operational in 2022. Developed by public and private sector partners led by the Alliance for Action (AfA) on Supply Chain Digitalisation, SGTraDex is a common data infrastructure launched in July 2021 to facilitate trusted and secure data sharing across supply chains. In addition, added transactional data points such as the receiving of vessel and barge location and the timing of delivery can help to enhance visibility to the underlying physical trade, further improving risk mitigation in the bunker industry and elevating Singapore’s position as a world-class digital and bunkering hub.

DBS’ role in SGTraDex

DBS played a crucial role in the conceptualisation of SGTraDex as the Technology Lead on the Alliance for Action (AfA) on Supply Chain Digitalisation where the common data infrastructure prototype was developed and tested through three defined use cases, and trials through a series of business simulations with participants across the trade ecosystem, of which DBS played a leading role in two use cases.

DBS was the sole financial institution that laid the cornerstone for the use case aimed at digitalising and optimising bunker delivery as well as working capital leveraging digital data. In collaboration with MPA, IMDA and other key stakeholders, the bank participated in industry workshops to identify the various stakeholders’ pain points and defining required data exchanges to provide greater certainty on the genuineness of trade, reduce manual data entry and enhance risk management.

DBS was also a key player in a second use case focused on enabling the digital-physical twinning of supply chains, leveraging digital data at source to detect trade fraud and reduce risk of duplicate trade financing. This is where the bank’s leading role in Singapore’s Trade Finance Registry (TFR) proof-of-concept contributed valuable insights in the development journey of SGTraDex, to create a solution that enables trade flows be screened more efficiently and thoroughly to enhance the security of trade financing transactions.

 

Photo credit: Manifold Times
Published: 21 July, 2021

 

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Ammonia

Singapore: EMA, MPA shortlist two consortia for ammonia power generation and bunkering

Chosen consortia are Keppel’s Infrastructure Division and Sembcorp-SLNG, and the bunkering players in these consortia are Itochu Corporation, NYK Line and Sumitomo Corporation.

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RESIZED bunker tanker singapore

The Energy Market Authority (EMA) and the Maritime and Port Authority of Singapore (MPA) on Thursday (25 July) said they have shortlisted two consortia that will proceed to the next round of evaluations of proposals to provide a low- or zero-carbon ammonia solution on Jurong Island for power generation and bunkering. 

The two consortia were selected from a total of six that were earlier shortlisted in 2023 to participate in a restricted Request for Proposal (RFP), following an Expression of Interest (EOI) called in 2022. The bids were assessed based on the technical, safety and commercial aspects of their proposals. 

The two consortium leads are Keppel’s Infrastructure Division and Sembcorp-SLNG, and the bunkering players in these consortia are Itochu Corporation, Nippon Yusen Kabushiki Kaisha (NYK Line) and Sumitomo Corporation. The two consortia will proceed to conduct engineering, safety and emergency response studies for the proposed Project.

At the next phase, we will select one of the two bidders as the lead developer of the project. The lead developer will develop the end-to-end ammonia solution comprising (i) generating 55 to 65 MW of electricity from imported low- or zero-carbon ammonia via direct combustion in a Combined Cycle Gas Turbine; and (ii) facilitating ammonia bunkering at a capacity of at least 0.1 million tons per annum (MTPA), starting with shore-to-ship bunkering followed by ship-to-ship bunkering. 

Given the nascency of the technology and global supply chains, the Government will work closely with the appointed lead developer to implement the Project. We aim to announce the lead developer by Q1 2025.

The project is part of Singapore’s National Hydrogen Strategy launched in 2022, which outlines Singapore’s approach to develop low-carbon hydrogen as a major decarbonisation pathway as part of the nation’s commitment to achieve net zero emissions by 2050.

A key thrust of this strategy is to experiment with the use of advanced hydrogen technologies that are on the cusp of commercial readiness. Ammonia is currently one of the most technologically-ready hydrogen carriers with an established international supply chain for industrial use.

“If successful, the project will position Singapore as one of the first countries in the world to deploy a direct ammonia combustion power plant and support the development of ammonia bunkering for international shipping, EMA and MPA said.

“This will help to unlock the potential of low-carbon ammonia as a low-carbon fuel.”

 

Photo credit: Manifold Times
Published: 25 July 2024

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LNG Bunkering

China: River-sea LNG bunkering vessel named and delivered in Shanghai

The 14,000 cubic metre ship, “Huaihe Nengyuan Qihang”, was independently developed, designed and built by Hudong-Zhonghua Shipbuilding (Group) for Huaihe Energy Holding Group.

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China: River-sea LNG bunkering vessel named and delivered in Shanghai

China’s river-to-sea LNG bunkering vessel, which was built locally, was named and delivered in Shanghai on Monday (19 July), according to the Shanghai Association of Shipbuilding Industry (SASIC). 

The 14,000 cubic metre (cbm) ship, Huaihe Nengyuan Qihang, was independently developed, designed and built by Hudong-Zhonghua Shipbuilding (Group) Co., Ltd for Huaihe Energy Holding Group as part of China’s "Gasification of the Yangtze River” project.

The ship is capable of travelling through the Nanjing Yangtze River Bridge all year round and has been dubbed a “Customised Yangtze River” LNG refuelling and transportation ship.

The ship is equipped with the B-type LNG containment system independently developed by Hudong-Zhonghua and authorised by a national patent.

According to SASIC, this was the first time such a system has been applied to a domestic LNG  refuelling and transportation ship, marking a major breakthrough in the B-type LNG containment system developed by China with independent intellectual property rights.

Related: China’s first river-sea LNG bunkering ship completes inaugural bunkering operation

Disclaimer: The above article published by Manifold Times was sourced from China’s domestic market through a local correspondent. While considerable efforts have been taken to verify its accuracy through a professional translator and processed from sources believed to be reliable, no warranty is made regarding the accuracy, completeness and reliability of any information.

 

Photo credit: Shanghai Shipbuilding Industry Association
Published: 25 July 2024

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Environment

Singapore-flagged tanker “Hafnia Nile” to be moved to safe location for cargo transfer

“Hafnia Nile” and the Sao Tome and Principe-flagged “Ceres I” collided and caught fire about 55km northeast of Pedra Branca on 19 July.

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Singapore-flagged tanker “Hafnia Nile” to be moved to safe location for cargo transfer

Shipowner Hafnia, the operator of Singapore-flagged tanker Hafnia Nile, is in discussion with The Maritime and Port Authority of Singapore (MPA) on a safe location to transfer the ship’s cargo, MPA said on Wednesday (24 July). 

They are also discussing towage plans for repairs to be approved by MPA.

Hafnia Nile and the Sao Tome and Principe-flagged Ceres I collided and caught fire about 55km northeast of Pedra Branca on 19 July.

“An additional tug with deep-sea towing capacity has arrived on site on 23 July 2024, joining four other tugs equipped with oil response and firefighting capabilities,” MPA said. 

In a meeting with MPA on 23 July, Hafnia informed MPA of light oil sheens near Hafnia Nile

“As part of the towage plan, Hafnia will arrange for repairs, containment and clean-up of the assessed localised seepage,” it added.

Reuters reported Hafnia stating that an initial assessment by a team of specialists conducting inspections of damaged areas of the tanker, showed Hafnia Nile's engine room had suffered damage from the fire.

Hafnia also reportedly said a salvage team has boarded the vessel and transferred equipment from one of the attending tugs on site to contain and stop any localised seepage.

Manifold Times previously reported Ceres 1 allegedly leaving the site of the collision as of 20 July and turned off its Automatic Identification System (AIS) but was believed to be in Malaysian waters.

The Malaysian Maritime Enforcement Agency (MMEA) was able to locate Ceres 1 some 28 nautical miles northeast of Pulau Tioman.

Related: “Ceres 1” goes dark after collision with Singapore-flagged tanker, located by MMEA
Related: MPA: Fire breaks out on two ships near Pedra Branca, search and rescue underway

 

Photo credit: Malaysian Maritime Enforcement Agency
Published: 25 July 2024

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